Trane Technologies (TT) Gross Margin — Quarter Ended Jun 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than cost of revenue, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than cost of revenue, resulting in an improved gross margin.

The gross margin improvement is associated with revenue increasing more than cost of revenue relative to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.7%

Gross profit

$1.6B

Revenue

$4.7B

Cost of revenue

$3.1B

Quarter-over-quarter change

+2.5 pts

Year-over-year change

+2.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

Period	Revenue	Gross profit	Cost of revenue	Gross margin
Mar 31, 2023	$3.7B	$1.1B	$2.5B	31.2%
Jun 30, 2023	$4.7B	$1.6B	$3.1B	33.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+2.5 pts

Year-over-year change

Jun 30, 2022

+2.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement is associated with revenue increasing more than cost of revenue relative to both the prior quarter and the year-ago quarter.

Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin also improved.

Monitor the trend in cost of revenue relative to revenue to assess margin sustainability.